What should the project manager do

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Reference no: EM132348364

Given the following projects A and B which are mutually exclusive and their respective cash flows, which project would you choose if

i) The rate of return is 8 percent

ii) The rate of return is 11 percent

iii) How is the decision affected by the rate of return? What should the project manager do

Year Project A Project B

0 -$240,000 -$198,000

1 $ 0 $110,800

2 $ 0 $ 82,500

3 $325,000 $ 45,000

Reference no: EM132348364

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